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by xxpor 1236 days ago
I'm trying to figure out if there's a tax advantage to anyone from an RSU + buyback scheme vs straight cash to employees. Seems like it'd be net 0?
2 comments

I don't think it's about tax advantages but flexibility for the conpany. RSUs usually vest over several years. If times get tough you can slow/stop buybacks. Eventually that would have an effect on the price from dilution but it'd be slow. You can't just not pay out cash awards that have already been scheduled (unless you opt for layoffs, but that's a big hammer).
It's also about aligning employee incentives with company success